Indian oil producers extend gains; brokerage says firms key beneficiaries of high crude prices

Oil India

16/06/2025 09:41

** Shares of oil explorers, Oil India OILI.NS and Oil and Natural Gas Corp ONGC.NS gain 0.9% and 1.2%, respectively

** Brent crude futures LCOc1 were up on the day after gaining 7% on Friday as renewed strikes by Israel and Iran over the weekend increased concerns that the conflict could widen across the Middle East, fueling worries around oil export disruptions O/R

** JM Financial maintains "buy" on OILI and ONGC; says the firms are key beneficiaries of high crude prices

** Adds higher crude prices will likely boost OILI, ONGC earnings, with 15% and 25% production growth estimated in next 2-to-3 years

** ONGC top gainer on Nifty energy index .NIFTYENR, which is up 0.69%

** Year-to-date, OILI, ONGC up ~12%, 6% vs 2% rise in .NIFTYENR

(Reporting by Manvi Pant in Bengaluru)

((Manvi.Pant@thomsonreuters.com; +918447554364;))